Question No: 1 ( Marks: 1 ) - Please choose one
Under perpetual Inventory system at the end of the year:
► No closin entry passed
► Closin entry passed
► Closin value find throuh closin entry only
► None of the above.
Question No: 2 ( Marks: 1 ) - Please choose one
Which of the followin loss is expected in manufacturin process and
represents a necessary cost of processin the marketable units?
► Operatin loss
► Abnormal loss
► Normal loss
► Extraordinary loss
Question No: 3 ( Marks: 1 ) - Please choose one
Materials requisitioned from the storeroom included Rs. 1,000 of
direct materials and Rs. 2,000 of indirect materials. Manufacturin
overhead should be debited for what amount to record the transaction:
► Rs. 1,000
► Rs. 2,000
► Rs. 3,000
► Rs. 0
Question No: 4 ( Marks: 1 ) - Please choose one
When 10,000 endin units of work-in-process are 30% completed as to
conversion, it means:
► 30% of the units are completed
► 70% of the units are completed
► Each unit has been completed to 70% of its final stae
► Each of the units is 30% completed
Question No: 5 ( Marks: 1 ) - Please choose one
Which cost accumulation procedure is best suited to a continuous mass
production process of similar units?
► Job order costin
► Process costin
► Standard costin
► Actual costin
Question No: 6 ( Marks: 1 ) - Please choose one
Examples of industries that would use process costin include all of
the followin EXCEPT:
► Beveraes
► Food
► Hospitality
► Petroleum
Question No: 7 ( Marks: 1 ) - Please choose one
Of the followin production operations, which one most likely employ
job order cost accumulation?
► Soft drink manufacturin
► Ship builders
► Crude Oil refinin
► Candy manufacturin
Question No: 8 ( Marks: 1 ) - Please choose one
Which of the followin would be considered as factory overhead usin a
job order cost system?
► Direct materials
► Direct labor
► Depreciation on factory buildins
► Salesperson's salary
Question No: 9 ( Marks: 1 ) - Please choose one
In a job order cost system, the use of direct materials would be
recorded as a debit to:
► Finished oods inventory
► Manufacturin Overhead
► Raw Materials inventory
► Work in Process inventory
Question No: 10 ( Marks: 1 ) - Please choose one
PEL & co found that a production volume of 400 units corresponds to
production cost of Rs, 10,000 and that a production volume of 800
units corresponds to production costs of Rs.12,000. The variable cost
per unit would be?
► Rs. 5.00 per unit
► Rs. 1.50 per unit
► Rs. 2.50 per unit
► Rs. 0.50 per unit
Question No: 11 ( Marks: 1 ) - Please choose one
If a company uses a predetermined rate for the application of factory
overhead, the idle capacity variance is the:
► Over or under applied fixed cost element of overheads
► Over or under applied variable cost element of overheads
► Difference in budeted costs and actual costs of fixed
overheads items
► Difference in budeted cost and actual costs of variable
overheads items
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the followinstatement about overhead applied rates are NOT
true?
► They are predetermined in advance for each period
► They are used to chare overheads to product
► They are based on actual data for each period
► None of the iven options
Question No: 13 ( Marks: 1 ) - Please choose one
What is cost apportionment?
► The charin of discrete identifiable items of cost to cost
centers or cost unit
► The collection of costs attributable to cost center and cost
unit usin the costin method, principles and techniques prescribed for
a particular business entity
► The process of establishin the costs of cost centers or cost
units
► The division of costs amon two or more cost centers in
proportion to the estimated benefit received, usin a proxy, e..square
feet
Question No: 14 ( Marks: 1 ) - Please choose one
In which of the followincenter FOH cost incurred.
► Production Center
► Service Center
► eneral Cost Center
► All of the iven options
Question No: 15 ( Marks: 1 ) - Please choose one
Where there is mass production of homoeneous units or where few
products are produced in batches, which of the followin cost driver
would berearded as best base for the determination of Factory overhead
absorption rate?
► Number of units produced
► Labor hours
► Prime cost
► Machine hours
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Question No: 16 ( Marks: 1 ) - Please choose one
The flux method of labor turnover denotes:
► Workers employed under the expansion schemes of the company
► The total chane in the composition of labor force
► Workers appointed aainst the vacancy caused due to dischare
or quittin of the oranization
► Workers appointed in replacement of existin employees
Question No: 17 ( Marks: 1 ) - Please choose one
Which of the followin best describe piece rate system?
► The increased volume of production results in decreased cost
of production
► The increased volume of production in minimum time
► Establishment of fair standard rates
► Hiher output is a result of efficient manaement
Question No: 18 ( Marks: 1 ) - Please choose one
Direct Labor is an element of:
► Prime cost
► Conversion cost
► Total production cost
► All of the iven options
Question No: 19 ( Marks: 1 ) - Please choose one
A store sells five cases of soda each day. Orderin costs are Rs. 8
per order, and soda costs Rs. 3 per case. Orders arrive four days from
the time they are placed. Daily holdin costs are equal to 5% of the
cost of the soda. What is the EOQ for soda?
► 4 cases
► 8 cases
► 10 cases
► 23 cases
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Question No: 20 ( Marks: 1 ) - Please choose one
Which of the followin is important requirement of the effective
material control?
► There are proper storae facilities
► There is a proper authority that will reulate the supply of
material
► The accounts should provide a runnin balance of the value of
the materials on hand
► All of the iven options
Question No: 21 ( Marks: 1 ) - Please choose one
Which of the followinmethod of inventory valuation is not recommended
under IAS 02?
► LIFO
► FIFO
► Weihted Averae
► Both LIFO & FIFO
Question No: 22 ( Marks: 1 ) - Please choose one
Averae consumption xEmerency time is a formula for the calculation
of:
► Lead time
► Re-order level
► Maximum consumption
► Daner level
Question No: 23 ( Marks: 1 ) - Please choose one
If, COS = Rs. 50,000
P Marin = 25% of sales
What will be the value of Sales?
► Rs. 200,000
► Rs. 66,667
► Rs. 62,500
► Rs. 400,000
Question No: 24 ( Marks: 1 ) - Please choose one
Costs that chane in response to alternative courses of action are
called:
► Relevant costs
► Differential costs
► Taret costs
► Sunk costs
Question No: 25 ( Marks: 1 ) - Please choose one
The cost of Telephone bill of the factory is treated as:
► Fixed cost
► Variable cost
► Step cost
► Semi variable cost
Question No: 26 ( Marks: 1 ) - Please choose one
Which of the followin are basic inventories for a manufacturin
concern?
► Indirect materials, oods in process, and raw materials
► Finished oods, raw materials, and direct materials
► Raw materials, oods in process, and finished oods
► Raw materials, factory overhead, and direct labor
Under perpetual Inventory system at the end of the year:
► No closin entry passed
► Closin entry passed
► Closin value find throuh closin entry only
► None of the above.
Question No: 2 ( Marks: 1 ) - Please choose one
Which of the followin loss is expected in manufacturin process and
represents a necessary cost of processin the marketable units?
► Operatin loss
► Abnormal loss
► Normal loss
► Extraordinary loss
Question No: 3 ( Marks: 1 ) - Please choose one
Materials requisitioned from the storeroom included Rs. 1,000 of
direct materials and Rs. 2,000 of indirect materials. Manufacturin
overhead should be debited for what amount to record the transaction:
► Rs. 1,000
► Rs. 2,000
► Rs. 3,000
► Rs. 0
Question No: 4 ( Marks: 1 ) - Please choose one
When 10,000 endin units of work-in-process are 30% completed as to
conversion, it means:
► 30% of the units are completed
► 70% of the units are completed
► Each unit has been completed to 70% of its final stae
► Each of the units is 30% completed
Question No: 5 ( Marks: 1 ) - Please choose one
Which cost accumulation procedure is best suited to a continuous mass
production process of similar units?
► Job order costin
► Process costin
► Standard costin
► Actual costin
Question No: 6 ( Marks: 1 ) - Please choose one
Examples of industries that would use process costin include all of
the followin EXCEPT:
► Beveraes
► Food
► Hospitality
► Petroleum
Question No: 7 ( Marks: 1 ) - Please choose one
Of the followin production operations, which one most likely employ
job order cost accumulation?
► Soft drink manufacturin
► Ship builders
► Crude Oil refinin
► Candy manufacturin
Question No: 8 ( Marks: 1 ) - Please choose one
Which of the followin would be considered as factory overhead usin a
job order cost system?
► Direct materials
► Direct labor
► Depreciation on factory buildins
► Salesperson's salary
Question No: 9 ( Marks: 1 ) - Please choose one
In a job order cost system, the use of direct materials would be
recorded as a debit to:
► Finished oods inventory
► Manufacturin Overhead
► Raw Materials inventory
► Work in Process inventory
Question No: 10 ( Marks: 1 ) - Please choose one
PEL & co found that a production volume of 400 units corresponds to
production cost of Rs, 10,000 and that a production volume of 800
units corresponds to production costs of Rs.12,000. The variable cost
per unit would be?
► Rs. 5.00 per unit
► Rs. 1.50 per unit
► Rs. 2.50 per unit
► Rs. 0.50 per unit
Question No: 11 ( Marks: 1 ) - Please choose one
If a company uses a predetermined rate for the application of factory
overhead, the idle capacity variance is the:
► Over or under applied fixed cost element of overheads
► Over or under applied variable cost element of overheads
► Difference in budeted costs and actual costs of fixed
overheads items
► Difference in budeted cost and actual costs of variable
overheads items
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the followinstatement about overhead applied rates are NOT
true?
► They are predetermined in advance for each period
► They are used to chare overheads to product
► They are based on actual data for each period
► None of the iven options
Question No: 13 ( Marks: 1 ) - Please choose one
What is cost apportionment?
► The charin of discrete identifiable items of cost to cost
centers or cost unit
► The collection of costs attributable to cost center and cost
unit usin the costin method, principles and techniques prescribed for
a particular business entity
► The process of establishin the costs of cost centers or cost
units
► The division of costs amon two or more cost centers in
proportion to the estimated benefit received, usin a proxy, e..square
feet
Question No: 14 ( Marks: 1 ) - Please choose one
In which of the followincenter FOH cost incurred.
► Production Center
► Service Center
► eneral Cost Center
► All of the iven options
Question No: 15 ( Marks: 1 ) - Please choose one
Where there is mass production of homoeneous units or where few
products are produced in batches, which of the followin cost driver
would berearded as best base for the determination of Factory overhead
absorption rate?
► Number of units produced
► Labor hours
► Prime cost
► Machine hours
for more contents visit
Question No: 16 ( Marks: 1 ) - Please choose one
The flux method of labor turnover denotes:
► Workers employed under the expansion schemes of the company
► The total chane in the composition of labor force
► Workers appointed aainst the vacancy caused due to dischare
or quittin of the oranization
► Workers appointed in replacement of existin employees
Question No: 17 ( Marks: 1 ) - Please choose one
Which of the followin best describe piece rate system?
► The increased volume of production results in decreased cost
of production
► The increased volume of production in minimum time
► Establishment of fair standard rates
► Hiher output is a result of efficient manaement
Question No: 18 ( Marks: 1 ) - Please choose one
Direct Labor is an element of:
► Prime cost
► Conversion cost
► Total production cost
► All of the iven options
Question No: 19 ( Marks: 1 ) - Please choose one
A store sells five cases of soda each day. Orderin costs are Rs. 8
per order, and soda costs Rs. 3 per case. Orders arrive four days from
the time they are placed. Daily holdin costs are equal to 5% of the
cost of the soda. What is the EOQ for soda?
► 4 cases
► 8 cases
► 10 cases
► 23 cases
for more contents visit
Question No: 20 ( Marks: 1 ) - Please choose one
Which of the followin is important requirement of the effective
material control?
► There are proper storae facilities
► There is a proper authority that will reulate the supply of
material
► The accounts should provide a runnin balance of the value of
the materials on hand
► All of the iven options
Question No: 21 ( Marks: 1 ) - Please choose one
Which of the followinmethod of inventory valuation is not recommended
under IAS 02?
► LIFO
► FIFO
► Weihted Averae
► Both LIFO & FIFO
Question No: 22 ( Marks: 1 ) - Please choose one
Averae consumption xEmerency time is a formula for the calculation
of:
► Lead time
► Re-order level
► Maximum consumption
► Daner level
Question No: 23 ( Marks: 1 ) - Please choose one
If, COS = Rs. 50,000
P Marin = 25% of sales
What will be the value of Sales?
► Rs. 200,000
► Rs. 66,667
► Rs. 62,500
► Rs. 400,000
Question No: 24 ( Marks: 1 ) - Please choose one
Costs that chane in response to alternative courses of action are
called:
► Relevant costs
► Differential costs
► Taret costs
► Sunk costs
Question No: 25 ( Marks: 1 ) - Please choose one
The cost of Telephone bill of the factory is treated as:
► Fixed cost
► Variable cost
► Step cost
► Semi variable cost
Question No: 26 ( Marks: 1 ) - Please choose one
Which of the followin are basic inventories for a manufacturin
concern?
► Indirect materials, oods in process, and raw materials
► Finished oods, raw materials, and direct materials
► Raw materials, oods in process, and finished oods
► Raw materials, factory overhead, and direct labor
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